Raw sugar futures rose to their highest level in nearly three months on Monday, boosted by emerging tightness in the physical market, while New York cocoa slid to a near four-year low. March raw sugar futures were up 0.23 cents, or 1.1 percent, at 21.34 cents per lb by 1500 GMT after peaking at 21.49 cents, the highest for the front month since mid-November.
Dealers said the tightness that had been expected in the physical market this quarter is now beginning to emerge. The market has also been supported by a diminishing crop outlook in top consumer India.
Green Pool said on Monday that it had trimmed its estimate of India's crop to 20.3 million tonnes from 20.5 million tonnes, driven by downgraded outlooks for Maharashtra and Karnataka.
"India needs to import 1-1.5 million tonnes of sugar - and the later it occurs, the more likely it will be white sugar rather than raw sugar for further processing in India," Green Pool said in a report.
March white sugar was up $5.50, or 1.0 percent, at $556.40 a tonne.
New York cocoa futures fell to the lowest level in almost four years as favourable crop weather in top grower Ivory Coast reinforced expectations that there will be a substantial global surplus in the 2016/17 season.
New York March cocoa was off $19, or 0.9 percent, at $2,053 a tonne after dipping to a low of $2,051, its weakest since March 2013.
Several downpours last week in most of Ivory Coast's main cocoa growing regions will help produce a healthy April-to-September mid-crop, farmers said on Monday, while in other areas rain was needed to keep flowers from drying out.
Speculators also brought their bearish stance in New York cocoa to its highest level in nearly five years in the week to Jan. 31, US government data showed on Friday.
May London cocoa fell 6 pounds, or 0.35 percent, to 1,692 pounds a tonne.
Robusta coffee futures were lower with March down $26 or 1.2 percent, at $2,151 a tonne.
Dealers were awaiting a decision on whether Brazil will import robusta coffee to help meet a domestic shortfall. Prices rose last week on talk that Brazil might be poised to approve imports but then fell back in the absence of any confirmation.
"They (Brazil) just seem to be kicking the can down the street until the next crop is in. And then they can say well we don't need to do it now," one London dealer said.
Dealers said that funds had begun to scale back a large net position and the recent advance, which took prices near to a five-year high, was showing signs of running out of steam. March arabica coffee was down 2.15 cents, or 1.5 percent, at $1.4410 per lb.